The Law of Diminishing Marginal Returns
0.0(0)
Studied by 1 person
Learn
Practice Test
Spaced Repetition
Match
FlashcardsCard Sorting
1/3
There's no tags or description
Looks like no tags are added yet.
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
4 Terms
1
New cards
The Law of Diminishing Marginal Returns
The law states that when you add more and more of a variable input to a fixed input the extra output you gain from each additional variable will decrease.
2
New cards
Variable and Fixed Inputs
In economics, we class labour as being a variable input and capital and land as being fixed (IN THE SHORT RUN)
3
New cards
Marginal Output Formula
MO = change in total output/change in quantity of workers.
4
New cards
Why is it only a short run concept?
IN the long run, all inputs can be altered so diminishing marginal returns cannot exist.
Note 
Flashcards (79)